"Don't spend - invest on internet marketing"

To begin with, just look at the way brand managers react when they hear the two words, internet marketing. The same way you react when you find that the electricity meter at home has stopped ticking. And this is so true, since most of us in this space are greedy and not smart. And we focus so much on return on investment (ROI) that sometimes we forget what returns actually are.

Typically, marketing on the internet is all about getting more traffic. Call it display advertising, viral marketing, search engine marketing (SEM), e-mail marketing. It doesn't matter even if this traffic doesn't represent a qualified lead. And both, agencies and clients are to blame for this.

Consider search. Most agencies try to get people to your site by going for the maximum reach. They do not even try to qualify customers beyond the fact they are online and hence a potential customer. And most brands end up paying to bring all of these people to your site. Not just for clicks but even for the wasted bandwidth and the wasted follow-up calls.

And this is not just about SEM. It happens with e-mail when untargeted messages are sent to an entire database. It happens when you base banner campaigns purely on reach. And even when websites are created without assessing the audience. And hence it's not about spending money on the internet but going about it the way you do with your portfolio. Invest and invest smartly. Here are a few steps to help you and your agency become selective and invest your money smartly.

For starters, avoid ego marketing: Don't build something that's cool for the sake of being cool or because your competitor is doing so. Internet marketing is not an ego tool for you or your brand. Treat it like the communications tool it is, to persuade, explain, inform and close the deal with your audience. So build a strategy that works for the audience, not you.

Strategically, begin by understanding your audience: Everybody with a mouse is not a target. Profile each market segment, and then use that as a guide: each profile's wants become your goals. Their problems form your content. And their likes and dislikes will drive your campaign.

Tactically, consider your vehicle: Internet behavior has already changed from browsing to searching. 80 per cent of users find what they want by typing keywords into search engines. So ensure that any activity you do goes beyond scrounging for high rankings and pursues highly relevant, niche terms. If that includes broad terms like �foods� and you can justify it, great. But if you sell food processors, you needn't be ranked No.1 for 'foods'. Also allow for the differences the online audience may have.

Deliver what you promise: When someone comes to your site, give them what they came for. Don't attempt to sell them more than what they came in for. Do that only after they have found what they need.

Track, measure, and hold accountable: The internet is not a broadcast medium. With every click being tracked, there is always some goal you can track. Watch how each marketing effort affects your conversion rate. If you aren't happy with campaign performance, change it. Fix it. Or push your agency to do so.

Hire an agency whom you can trust: At least when it comes to internet marketing. Don't hire someone who tells you, you are smart, you already know that. Hire an agency because they can map out an effective strategy to get visitors, create customers, and adjust to changing site trends. Hire them because they will not hesitate telling you when something is a mistake. My clients may not always like me or agree with me, but one thing I can say is they can always trust me.

And one thing I learnt from a client yesterday. Never base decisions on a tiny sampling of data. If you get 10 visitors from a campaign and none contacted you, then the medium is not bad, the campaign is. If most internet marketers have it all wrong, a few do get it right. The success stories � IBM, MPTDC and Unilever, to name a few � all have one thing in common. They market what they deliver. If you select your visitors, you'll sell more for less, and have a far happier client base.

So demand better marketing. And invest, don't spend.

� 2007 agencyfaqs!